What is Shadow IT and Why is it so Risky?

Are Your Employees Putting Your Business at Risk Without Realizing It?

If you run a small or medium-sized business in Washington or Oregon, you're probably already mindful of common cybersecurity risks, like phishing emails or weak passwords. But another hidden danger might be slipping right under your radar: Shadow IT.

Shadow IT happens when your team uses apps, software, or cloud services without your IT department’s approval. They usually mean well, looking for quicker or easier ways to get their jobs done. But in reality, these unauthorized tools can create massive security vulnerabilities, opening your business to serious security threats.

What Exactly Is Shadow IT?

Shadow IT includes any technology your employees use without IT’s knowledge or approval, such as:

• Personal Cloud Storage: Employees using personal Google Drive or Dropbox accounts to share company files.

• AI Tools and Automations: Using AI content generators or automation software that haven’t been verified for security risks.

• Messaging Apps: Installing WhatsApp or Telegram to communicate without using official, secure channels.

• Unofficial Collaboration Tools: Teams signing up for apps like Trello, Slack, or Asana without IT oversight.
  

   

Why Should SMBs Be Concerned About Shadow IT?

Shadow IT is dangerous because your IT team can't secure what it doesn't see. Here’s why that matters:

• Data Leaks: Personal apps often don’t have the same security standards, meaning sensitive business information could accidentally leak.

• No Security Updates: Unlike approved software, these apps aren’t regularly updated by your IT, leaving vulnerabilities wide open for hackers.

• Compliance Issues: If your business must adhere to HIPAA, GDPR, or PCI-DSS regulations, using unapproved apps could lead to costly fines or legal trouble.

• Malware and Phishing: Malicious apps disguised as legitimate tools can infiltrate your systems, compromising critical data.

• Account Hacks: Without multifactor authentication (MFA), unauthorized apps can easily become gateways for hackers into your business network.

Why Do Employees Turn to Shadow IT?

Most employees don’t intentionally put the company at risk. Consider the recent “Vapor” app scandal, uncovered by security researchers at IAS Threat Labs. Over 300 malicious apps on Google Play, downloaded 60 million times, hid behind innocuous functions while secretly phishing credentials and overwhelming devices with intrusive ads.

Often, employees simply:

• Find company-approved tools cumbersome or outdated.

• Look for quicker ways to complete tasks.

• They are unaware of the security risks involved.

• Believe IT approval processes are slow, so they seek shortcuts.

Unfortunately, those shortcuts can result in costly security breaches for SMBs.

5 Steps to Prevent Shadow IT From Hurting Your Business

The key is being proactive and staying ahead of potential threats. Here’s how:

1. Create an Approved Software List

Partner with your IT department to establish a clear list of secure, vetted applications employees can use. Keep it updated regularly.

2. Restrict Unauthorized Downloads

Set policies on company devices to prevent downloads of unapproved software. Make IT approval quick and accessible, so your team feels supported rather than restricted.

3. Educate Your Team

Regularly explain why Shadow IT poses a risk. Make cybersecurity education relatable, practical, and ongoing.

4. Monitor Your Network

Use network-monitoring tools to detect and flag unauthorized software before it becomes problematic.

5. Strengthen Endpoint Security

Deploy endpoint detection and response (EDR) solutions to actively track software use, prevent unauthorized access, and swiftly identify suspicious activity.

Don’t Let Shadow IT Turn Into a Business Crisis

Curious about which unauthorized apps might be hiding in your business right now? Teknologize offers a FREE Network Security Assessment tailored specifically to SMBs in Washington and Oregon. We’ll uncover vulnerabilities, highlight security threats, and help protect your business before trouble strikes.

Teknologize is a SOC 2-certified, Professional Technology Services company with clients throughout the Pacific Northwest. We have offices located in:

• Tri-Cities, Washington 509.396.6640

• Yakima, Washington 509.396.6640

• Bend, Oregon 541.848.6072

• Seattle, Washington 206.743.0981

Questions about your IT or Cybersecurity? Give us a call today!